10/19/2024

Only fools would not sell to the biggest market and would not buy from the cheapest seller

 Just wondering about the price of grapes that is now unthinkably cheap in Singapore. I understand grapes are even grown in South America, China, India, Japan, Thailand, Vietnam, Myanmar and I believe also in Malaysia. This is probably the reason for the competition forcing cheap grapes to be marketed here in Singapore.

So, how do grapes from USA and EU vineyards hope to compete? The answer is obvious. Even wine making is not enough to soak up the demand. Therefore, the future of vineyards in USA and EU are not that rosy. The USA can harp on the technology war against China, while taking their eyes away from other sectors. The same mistake they made of ignoring China over the last three decades and now fighting a losing battle. The USA was so embroiled in fighting terrorism then, it overlooked China rising.

Agriculture and livestock farming in the USA and EU are facing an uncertain future with China now targeting the two sectors. This is going to be a very important development, as without the China market, the agriculture and livestock farming sector in USA and EU are also going to shrink. A shrinking market will obviously shrink the sectors production capacity. That is basic knowledge.

China buying more grain and meat from the Global South countries like Brazil and Argentina and now Russia, will be a big loss for the USA and EU. That will give the Global South countries more incentives to grow more and raise more cattle and pigs for the Chinese market and decimate the Global North countries.

China is fighting a trade war against the West, using countermeasures that are going for the jugular and hurts the most. China is not fighting a trade war blindly like the USA and EU, that leaves gaping holes that are to be filled by alternative suppliers inside BRICS. China is going to decimate the West's agriculture and livestock production facilities and food security issues for them going forward.

Anonymous

3 comments:

  1. ASEAN is selling to their biggest trading partner, China. Geopolitical foes, Japan, South Korea and Taiwan are also selling to their biggest trading partner, China as well. China is not short of countries trying to sell their products or raw materials to China and vice versa.

    In fact, the more worrying factor for these countries above is what if China does not want to buy from them anymore and go elsewhere for alternatives. Russia is replacing some countries for agricultural and livestock products. Brazil is another country that is doing increasing trade with China. So does many other Central American countries like Mexico. The world is so big and not everything centers on the USA and Europe today.

    ReplyDelete
  2. China is not just fighting a trade war. China is putting farmers in the West out of business. With BRICS setting up its own commodity exchange, the USA and the Western farmers cannot forecast what to grow, what to rear, how much to grow and rear and that gives farmers over there just guessing and suffering.

    ReplyDelete
  3. The biggest tragedy in the Ukraine War is in Europe. The European countries are going bankrupt by the Americans. They cannot get their raw material from Africa, oil from the ME. They cannot make their products cheap and competitive enough to sell to their biggest market, China. They are also banned from selling to China.

    ReplyDelete